The settlement, announced by the Environmental Protection Agency (EPA) and the Justice Department, also includes a commitment from the railroad to allocate over $500 million for safety improvements and addressing community health concerns.

Residents who were forced to evacuate their homes following the derailment expressed mixed feelings about the deal, as it does not involve any criminal charges. However, the settlement comes just two days after Norfolk Southern's $600 million class-action settlement with affected residents received approval from a federal judge.

Apart from the $15 million civil penalty, Norfolk Southern has agreed to pay an additional $235 million for past and future cleanup costs, build a $25 million health care fund to cover medical exams for 20 years, and allot approximately $30 million for long-term monitoring of local water sources. The company has also committed $244 million for previously promised railroad improvements through 2025.

Despite the significant financial commitments, many residents are critical of the settlement's impact on Norfolk Southern, considering the company reported a $527 million profit in the fourth quarter of last year, with its CEO receiving $13.4 million in total compensation.

In response, EPA Administrator Michael Regan emphasized that the $15 million fine is the largest allowable under the Clean Water Act. He highlighted Norfolk Southern's commitment to ongoing cleanup costs and meaningful safety improvements. Regan expressed that the settlement is historic and reflects a step towards making up for the damage caused to the residents of East Palestine.

Misti Allison, an East Palestine resident, acknowledged the progress made with the settlement and noted that the cleanup is expected to conclude later this year. However, fears about potential long-term health effects remain a concern for the community, as neither this settlement nor the class action settlement includes provisions for addressing these issues.

As part of the promised safety improvements, Norfolk Southern plans to enhance its detection capabilities by adding approximately 200 trackside detectors to identify overheating bearings. The company also intends to invest in advanced inspection portals equipped with cameras that capture detailed images of passing railcars.

While a bill in Congress, which has stalled, seeks to enforce more significant changes in rail safety, Norfolk Southern maintains that it has already taken extensive measures. The company has spent $780 million on cleanup efforts and provided $107 million in aid to affected residents and communities.

With the announcement on Thursday, the sole remaining federal investigation is being conducted by the National Transportation Safety Board (NTSB) to determine the cause of the derailment. The NTSB plans to reveal its findings during a hearing in East Palestine on June 25, potentially influencing future rail safety reforms.

Critics, including U.S. Sen. JD Vance and Ohio Attorney General Dave Yost, expressed disappointment that the government settled before the release of the NTSB report. They believe that waiting for the report's findings would have allowed for maximum leverage on those responsible for potential wrongdoing.

The NTSB has previously suggested that an overheating bearing, undetected by Norfolk Southern's trackside detectors, likely caused the derailment. Additionally, the agency stated that the five tank cars filled with vinyl chloride did not require an open vent-and-burn operation to prevent an explosion, as they were already starting to cool despite the surrounding fire.

While this settlement marks a significant step towards resolution, Norfolk Southern still faces a lawsuit filed by Ohio in relation to the derailment.